Management Message

Business
Strategy to create
economic value

Value Creation Story 1

This section provides key insights into the medium tolong-term strategies of the three main segments which
form our core business model based on analysis of
the firm’s strengths, risks, and growth opportunities.
Furthermore, we introduce expansion measures throughexternal alliances and outline significant initiatives to more
efficiently allocate resources.

Retail Division

P.24

Investment Management Division

P.27

Wholesale Division

P.30

Value Creation Story 2

Main three segments

Spotlight
Expansion of our business through partnership

P.33

2

Wholesale Division - Management Interview

P.35

Financial and non-financial data

1

Nomura Report 2023

23

Nomura Holdings, Inc.

Management Message

Enrich clients by responding
to their asset concerns
Provide products and services tailored to eachclient through an optimal approach
Flow revenue, etc.

Products and services wecan provide

55%

Client types

Business
corporations

Regional
financial
institutions

Local
governments

Corporations
and educational
institutions

Revenuebreakdown¥300.2 billion(FY2022/23)

Corporates

Investment trusts

Discretionary investment
services

Client assets¥122.2 trillion
as ofMarch 2023

Private assets, real assets
Solutions for inheritance,business succession, realestate, etc.

45%

Value Creation Story 1

Traditional investment
products such as stocks
and bonds

Recurring revenue

Corporate
ownersHNWIs

Mass affluent

Asset builders

Individuals

Retail Division

Salaried employees services

Opportunities

Capitalizing on shift from savings toinvestment supported by initiatives suchO-1 as doubling asset-based income plan by
Japanese government

Sophisticated consulting capabilities andsupporting platforms

Responding to growing client need for asset
O-2 succession and inheritance in line with theacceleration of asset transfers

Providing highly specialized services throughorganization aligned to client needs

Increase in the number of HNWIs or

O-3 UHNWIs, and their net financial assets

Nomura Report 2023

24

Nomura Holdings, Inc.

Continued uncertainty in

R-1 market environment

Decline in commission rates and market

R-2 share due to intensified competition

Risk of client disengagement and worsening
profitability due to changes in values and
R-3 needs of clients on increased acceptanceof remote and digital services anddemographic shifts

Financial and non-financial data

Largest client franchise across domestic
securities sector

Risks

Value Creation Story 2

Strengths

Head of Retail Go Sugiyama

Strategic themes
Point A
Capture business
opportunities inan expanding
market, andincrease market
share in face-toface business

Point C
Expand client
franchise throughsalaried employee
business andalliances

O-2

O-3

R-1

R-2

R-3

R-2

 reate a service delivery structure that leverages
Cboth digital and Sales Partner relationships
Improve convenience through digital services

R-3

R-2

R-1

B Provide sustainable service by establishing non-face-to-face business models

On the other hand, for clients who want non-face-to-face services, such as the busy working
generations, we will improve convenience through providing apps and online services, while also
creating an environment in which Sales Partners can focus on providing added value to clients.
Our improved offering will meet their needs by creating a service delivery structure that leverages
both digital and Sales Partner relationships. We will also improve efficiency of processes which
do not require any involvement of Sales Partners by leveraging digital tools.

 ocus on our salaried employee business toFexpand our client franchise on a sustainable basis
E xpand business by seeking alliances based on
specific characteristics of each region

O-1
R-1

The total amount of net financial assets held by Japan’s HNWIs and UHNWIs is on the rise andit is expected to continue growing. We view this market expansion as an opportunity to increase
our market share by engaging additional Sales Partners focused in the face-to-face business,and grow net revenue.
In general, HNWIs and UHNWIs have complex and diverse concerns about their assets.
Consultation and proposal of products and services by experienced Sales Partners withadvanced skills and know-how are effective in responding to such concerns, and thus face-toface business is one of the key priorities of our strategy.

Increase market share by engaging additional
human resourcesL everaging the Group's comprehensive
capabilities to enhance solution services
O ptimize the number of accounts per Sales
Partner

O-1
R-1

share in face-to-face business

R-3

C Expand client franchise through salaried employee business and alliances

We will focus on our salaried employee business and alliances to expand our client franchise ona sustainable basis.
In the salaried employee business, we aim to further increase the number of clients byproviding greater support to companies seeking to help employees build assets. We have put inplace a system that allows executives and employees of those companies to open accounts with
Nomura Securities smoothly, and once accounts have been opened, we will support financial
asset management and asset building in line with each client’s needs.
In terms of alliances with regional financial institutions, we will build optimal sales structures
tailored to the specific characteristics of each region, which will lead to winning new clients.

 ake the necessary investments and rebuild ourMexpense structure

R-3

Milestones
KPIs/KGI towards FY2024/25
FY2024/25 /March 2025 (Target)

Recurring revenue assets¥18.7 trillion¥21.6 trillion

Net inflows of recurring revenue assets¥333.7 billion¥800 billion

Flow business clients

1.45 million

1.46 million

Services for salaried employees

3.49 million

3.66 million

Income before income taxes¥33.5 billion¥95 billion

D Control costs

In Retail, we are aiming to reduce costs by about 20 billion yen by end of March 2025 byimplementing a project to rebuild our expenses structure. Key initiatives include optimizing theallocation of employees and ensuring pay-for-performance, which together will reduce personnel
costs and real estate expenses as branches will be moving from road level to higher levels andshrinking office space.

KPI

KGI

Nomura Report 2023

25

Nomura Holdings, Inc.

Financial and non-financial data

FY2022/23 /March 2023 (Actual)

Value Creation Story 2

Point D
Control costs

O-1

A Capture business opportunities in an expanding market, and increase market

Remarks

Value Creation Story 1

Point B
Provide sustainable
service by
establishing nonface-to-facebusiness models

Opportunities& Risks

Key tenets of future growthManagement Message

Key priorities of medium to long-term strategy

Sustainability initiatives

As we have been working on our segment based approach since 2019, it has become clearer
that clients’ needs vary greatly depending on the size of their assets. Against this backdrop, inorder to maximize productivity, we organized clients’ needs into “face-to-face needs” and “nonface-to-face needs,” and increased the number of Sales Partners in the face-to-face business
in April 2023. By reallocating resources appropriately to each client’s needs, we aim to improve
Retail profitability.

Enhancing financial literacy of the current working age population through salaried
employee businesses

Changes to our coverage model

4,800

Client needs and our strategies
Client needs

Our strategies

 reserve assets amidP
current environment

 reate Japan’s largest
C
private banking team of 600
people by combining WM
and corporate/owners
segment

B usiness succession,
estate planning onsulting for full assetC
portfolio including
non-financial assets

1,800

DigitalFY2022/23

 edium to long-term asset
M
formationInformation and advice onmarket conditions

In response to growing awareness of environmental andsocial issues, we selected an ESG product lineup of fundswith the theme of realizing a sustainable society throughinvestment and building client assets over the medium tolong-term. We began offering ESG products primarily toindividual investors in July 2020. We are also engaged in
the sale of ESG bonds to individuals, and contributing to
the expansion of ESG investment opportunities in Japan.
In addition, we hold ESG seminars and stream ESG
study sessions for individual investors using SNS toconvey Nomura’s message that we contribute to solve
social issues, promote individual investors to invest
into ESG investments, and create a virtuous cycle ofinvestment funds.

 ave a smaller headcountH
to deliver services to abroader range of clients byusing digital tools

O nline light-touch services

FY2023/24

Nomura Report 2023

800

747
647

586

600

400

200

221

0
Jul-20Mar-21

Mar-22Mar-23

System to deliver services combining digital and Sales Partners
Find potential clients

26

Unearth needs

Regular follow up

Proposals

Current

 ales Partners chooseS
and approach potential
clients

Sales Partners provide information and reports

 ales Partners makeS
proposals

FutureA pproach clients
based on targeting
using digital tools

 rovide information and regular follow ups using digital toolsPClients voluntarily check by themselves via apps and online
services ales Partners makeS
proposals (remote mainly)

Nomura Holdings, Inc.

Financial and non-financial data

By increasing the number of Sales Partners covering face-to-face business, we have optimized
the number of accounts per Sales Partner. This makes it possible to review portfolios in a timely
manner that captures changes in the environment and make consulting proposals for asset
succession measures, even for clients that we have not been able to fully engage with. Increasing
the number of clients who value the services provided by our Sales Partners and improving client
satisfaction will lead to growth in our ongoing business and ability to win new clients. We also
aim to expand our face-to-face business by leveraging Group’s comprehensive strengths andexpanding our lineup of assets available to interested HNWIs and UHNWIs.
For clients who prefer non-face-to-face services, we provide investment information and asset
management services through digital tools. On the other hand, Sales Partners provide services
such as product proposals and consulting which can provide greater value. By leveraging both
digital and Sales Partner capabilities, we aim to create efficient and effective system to deliver
services.

Total of ESG related funds AUM(trillions of yen)

Value Creation Story 2

Non face-to-face needs

200+

Increase investor pool in ESG and SDG investment

 ubstantial increase inS
headcount to meet theneeds of HNWI market

Value Creation Story 1

Face-to-face needs

3,200With the increasing focus on human capital for sustainable growth, more companies are trying
to help their employees build assets. Retail Division provides age-appropriate financial literacy
programs for employees of companies that provide salaried employee service. Programs arecustomized according to the industry to which they belong and corporate culture, and evenafter the program, information is regularly provided to program participants for follow-up. Thus,
Retail Division is contributing to the improvement of financial literacy among the current working
population.
We are also working to help people understand the necessity of building assets throughmedium to long-term funded investments. For example, we hold seminars and briefing sessions
for new employees in response to corporate clients’ requests, as well as continuing education
and benefit seminars for existing employees. We have also enhanced our web services forvarious programs such as ESOP, Corporate DC and NISA scheme.

Management Message

Segmentation and resource allocation in line withclients’ needs

Management Message

Realize a virtuous cycle of investment that leads
to the resolution of social issues by providing
high-quality investment products that meet thediverse investment needs of clients
We provide solutions that meet broad investors’ diverse investment needs,
through a wide range of assets classes from traditional to alternative assets

Traditional Assets
EquityBonds
Alternative approach(multi-asset, hedging)

Investment
Management Division

Alternative Assets

Approach to Investors

Investment Trust

Individual Investors

Public offeredinvestment trusts

NISA
Product GovernanceImproving financial
literacy

Exchange Traded Funds(ETF)
Private offeredinvestment trusts
Discretionary
investment, Advisory

Solution
DeliveryPrivate Equity
Private Debt
Aircraft leasing
Forestry asset
Real estate

Real Assets
Businesses

Investment Corporation
Investment Partnership

Infrastructure
Other Funds

6%

94%

Revenuebreakdown¥128.6 billion(FY2022/23)

Institutional Investors
DC (DefinedContribution)
ESG
Alternatives

Business revenue
Investment gain/loss

International Investors

Assets undermanagement¥67.3 trillion

UCITS *1
Sustainability
Credit management

Alternative assets
under management¥1.263 trillion*1 Undertakings for Collective Investment in Transferable Securities

Opportunities

Asset management specialization with ability togenerate competitive performance by leveraging
the expertise and creativity of each company within
the division

Japan’s abundant individual financial assets,
O-1 and the government’s plan to double assetbased income acting as a tailwind

Access to the Group’s excellent andbroad client base

Growth of investment in private assets
O-2 (in particular Japan, high-net-worth
individuals)

Ability to create new businesses and operate
efficiently using the Group’s financial resources,talent pool, knowledge and IT infrastructureHigh levels of funding demand and investor

O-3 awareness for sustainability-related
investments

Nomura Report 2023

27

Nomura Holdings, Inc.

Risks

Changes in competitive environment:

R-1

Lower management fee rate due to increased competition,and commoditization of products that will occur before thefull-scale launch of new business areas

Changes in business environment:
in investor needs, preferences for passive
R-2 Changes(Index) investing, and changes in distribution models
due to digitalization

Changes in operating environment:

R-3 Impact of adverse market conditions on asset
management performance

Financial and non-financial data

Strengths

Value Creation Story 2

Head of Investment Management Yoshihiro Namura

PrivateMarkets
Businesses

Products and Services

Value Creation Story 1

Asset Classes
PublicMarkets
Businesses

Strategic themes

Opportunities& Risks

Point A
Increase assets
under management
and provide
higher value
added products
and services inpublic markets
businesses

O-1
R-1

O-3

R-2

R-3

O-1

O-2

O-3

R-1

A I ncrease assets under management and provide higher value added products

Remarks

and services in public markets businesses

In public markets businesses, Nomura Asset Management, a core company in our division, provides
investment trusts that help Japanese individual investors build up their assets over the long-term. WithNISA small investment tax exemption system expanding and becoming permanent from January 2024,
we are preparing product lineups that will encourage a wide range of age groups to take advantage ofthe system, including the launch of a new series of low-cost index funds, “My First NISA”.
In publicly offered investment trusts, we evaluate each fund from the perspective of strengthening
product governance, and aim to create competitive performance by concentrating our management
expertise in a group of high-quality funds. At the same time, we contribute to improving financial
literacy across wide generations of investors by providing daily information and support for distributors.
We are also expanding and strengthening our portfolio of investment trusts for defined contribution
pension plans (DC) and exchange-traded funds (ETF) to meet the needs of investors.
We are enhancing our offerings across our discretionary investment and advisory services for domestic
and foreign institutional investors, and our management services of privately offered investment trusts. We
are expanding our credit management capabilities and ESG investments in addition to our mainstay active
management strategies in Japanese stocks, global stocks and global bonds.
In UCITS for international investors, we aim to grow our business by expanding our lineup of ESG
funds that comply with European Sustainable Finance Disclosure Regulations, and by collaboratingwith our strategic partner, American Century Investments, to develop competitive products worldwide.

 ublicly offered investment trusts: Provide products
Pthat support individual investors build long-term
assets and improve competitiveness by strengthening
product governanceDC & ETF: Expanding product lineup and investor base
Strengthen in-house management, increase sustainable
investment strategy, and expand global footprint
 rovide investment opportunities by leveraging
Pgatekeeping investment capabilities and expand
in-house investment strategy
Scale up domestic private sector business and launch
full-scale private asset management business in the USE ntry into real assets areas such as real estate andforestry assets
L everage the Group’s comprehensive strengths: Earlycommercialization and distribution through deploying
talent and financial resources, sourcing of investment
projects

Value Creation Story 1

Point B
Expandinvestment basein alternative
assets

Key tenets of future growthManagement Message

Key priorities of medium to long-term strategy

B Expand investment base in alternative assets
R-3

 roup-wide unification of IT system infrastructureGImprove operational efficiency: Leverage corporate
support functions, pursue outsourcing opportunities

Milestones
KPIs/KGI towards FY2024/25
FY2024/25 /March 2025 (Target)

Assets under management¥67.3 trillion¥75.8 trillion

Net inflows-¥0.8 trillion¥3 trillion

KPIs

C Increase efficiency and control costs

KGI

Income before income taxes¥43.5 billion

To increase cost efficiency, we will leverage IT system infrastructure across Nomura Group as
well as corporate and other support functions. We will also use resources outside the Groupthrough appropriate outsourcing.

¥63 billion

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28

Nomura Holdings, Inc.

Financial and non-financial data

FY2022/23 /March 2023 (Actual)

Value Creation Story 2

Point C
Increase efficiency
and control costs

In the two years since the establishment of the Investment Management Division, alternative
assets under management has grown to approximately 1.3 trillion yen, much of which isaccounted for by gatekeeping management. We will continue to take advantage of our strength
in gatekeeping management based on more than 20 years of experience in evaluating andmanaging alternative assets, providing investment opportunities for individual investors in
addition to packaged solutions for institutional investors.
In terms of in-house management, we aim to scale buyout investments, search funds (businesssuccession buyout investments), growth investments and mezzanine investments in Japan. In the US, wehave also launched asset management businesses such as private credit, with the aim of expanding ourscale over the medium to long-term. In the real asset space, in addition to aircraft leasing, we also enteredinto real estate and forestry asset management by working with external partners.
We will continue to expand our alternative product offering and provide solutions tomeet investors’ diverse needs, including individual investors, by further utilizing the Group’s
comprehensive strengths in human resources and client networks.

Sustainability initiatives
Contributing to sustainability through strengthening the investment chain

Current main strategies

As a responsible investor, Nomura Asset Management, based on its corporate philosophy,
strives to resolve key issues to realize an investment chain (a virtuous cycle of investment).
Through stewardship activities, such as promoting responsible investment and engaging inconstructive dialogue with investee companies, we support sustainable corporate growthby helping investee companies increase their corporate value and create social value. Aspart of our engagement activities, we have launched Project BRIDGE to help uncover the
potential corporate value of Japanese companies, while simultaneously disseminating
information about investment opportunities in Japanese stocks to investors around theworld. We also aim to transition to a sustainable, decarbonized society by encouraging thecompanies we invest in to address climate change issues.
ofRatio Number
topicsStrategies under expansion

Engagement Results
Private Credit

High yield

Total number of engagement topics(total number of meetings)(US,EMEA)

Unconstrained

Business strategy

16%

397

2022

Financial strategy

15%

361

Ratio bytopic

ESG-related meetings 69%

1,666

Engagement meetings

Bonds

*1

Hybrid securities
StocksInterval fund* 3

Responsible Investment Reporthttps://global.nomura-am.co.jp/responsibility-investment/investors/

Emerging market
corporate bonds
Co-investment
and secondary
strategies
Sustainability
SFDR compliant *2

14%
28%
7%

343
679
174

2,424

Total

Asset classexpansion

Emerging
market stocks

In the private sector, Nomura Private Capital, which was founded in 2022, established the
Nomura Alternative Income Fund, which invests in private credit and began operating in 2023.
The fund initially targets high-net-worth individuals in the US. In the future, we will enhance
our organizational structure and investment strategy with greater value-added offerings andaim to capture institutional investor interest.

* A sustainable, recycling-oriented, symbiotic economy in which humans
and nature coexist by recycling resources through the use of biologicalresources such as forests and biotechnology instead of fossil fuels*1: An investment method that utilize all investment methods including derivatives as well as cash bonds.
*2: ESG funds that comply with Articles 8 and 9 of the Sustainable Finance Disclosure Regulations in Europe*3: Registered Investment Company under Rule 23c3 of the Investment Advisers Act of 1940.

Nomura Report 2023

29

Nomura Holdings, Inc.

0

2022

2050

*Calculation by New Forests

Financial and non-financial data

In January 2023, we acquired a stake in New Forests, the world’s second largest forestry
asset management company. New Forests manages 1.27 million hectares (as of the endof December 2022) of forests, which represents over 60% of the total area of the Shikoku
region. Forestry asset management is a sector that is expected to grow globally in terms ofinvestment opportunities and size.
Forestry funds market size
We, at Nomura Group, have a global client base(billions of dollar)
and offer new asset class of investment products
1,250
to a wide range of clients. We also anticipate future
1,000
expansion into the fields of farmland funds andcarbon credits.
750
In addition to providing investors with returns
from forestry resources, we aim to contribute to500
sustainability by appropriately conserving forests
250
through the realization of a circular bioeconomy *,which is one of New Forests’ visions.

ACI
Global stocks

470

SocialGovernance
Proxy voting-related

Offering of a new investment solution, forestry asset management(value, concentrated)

Asia, India stocks(1,010 meetings)

19%

Value Creation Story 2

Japan stocks

2,424 topics

CreditEnvironmental

Value Creation Story 1

In recent years, Nomura Group has developed a reputation beyond its known expertise inJapanese and Asian equities, and into credit management.
Nomura Corporate Research and Asset Management Inc. (NCRAM), established in the
US in 1991, primarily manages high-yield bonds. NCRAM holds funds from institutional andretail clients in the Americas, Europe and Asia and has approximately US$27 billion in assets
under management.
Nomura Asset Management’s UK base manages the Global Dynamic Bond Fund,which aims to maximize total returns by selecting investment targets from a wide range ofbonds from around the world in a flexible manner. In order to further strengthen our credit
management capabilities, we have acquired outside managers to support management ofhybrid securities and emerging market corporate bonds since 2022.

Management Message

Expand investment management capabilities
as a credit management specialist

Business

Products and Services
M&A Advisory

Advisory
Services

Corporate

CFS Cash(DCM, ECM, ALF1)
CFS Solutions(Hedging, Structured Finance, etc.)

Sponsors/
Private Equity
Firms

Public & Private
businesses

Real Money

Liquidity & Market Making
Bespoke Investor ProductsSec.
Trading&
Execution

Financing

Flow Rates≥5% Share US
EMEA Structured Rates

Global Markets

15 %

85 %
RevenuebreakdownOverseas

73 %Retail/HNWI

AEJ Cash Equities

Investment
Banking¥772.4 billion

Japan

27%

(FY2022/23)

Agency Execution
ResearchJapan Fixed Income Client Penetration3
Japan Equity Wallet Share 4
Japan M&A, ECM, DCM5International Markets6

Banks

SSAs 2Global Markets#1

Domestic Markets

Equity Advisory
Debt & Ratings Advisory

Mainly Private
business
ClientFinancing&
Solutions

Clients

Hedge Funds

Opportunities

O-1 several reform initiatives in Japan that

Potential change in monetary policies andDeveloped targeted, market leading businesses
across international regions to strengthen franchisepresence amidst incumbents andnew entrants

O-2 sustainability-linked advisory, financing

Ability to serve diverse needs of clients throughglobal platform with cross-border capabilities

O-3 cross-border deals driven by changing

attract growing investments globally
Capitalize on secular demands for

Head of Wholesale Christopher Willcox

Risks

Rising inflation, Central Bank policy and

R-1 resulting volatility

R-2 Geopolitical risks, e.g. Russia/Ukraine

and solutions

Growing International-Japan
macroeconomic structures

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Nomura Holdings, Inc.

Recessionary market outlook, continued

R-3 risk off sentiment

Financial and non-financial data

Market leading position in Japan provides uniqueadvantage to connect financial and capital markets
east and west

Wholesale Division
Value Creation Story 2

1. Acquisition & Leveraged Finance 2. Sovereign, Supranationals & Agencies 3. Source: Greenwich, for CY2022 (#1 in Yen Bonds, IR Derivatives,
Structured Credit and Non-Yen Bonds) 4. Source: McLagan, for CY2022 (#1 in Overall Cash EQ and Low Touch) 5. Source: For Japan M&A and
ECM, Refinitiv; for Japan DCM, Capital EYE; for FY2022/23 (By number of deals) 6. Source: Coalition Greenwich Competitor Analytics (CY2022 Avg); Market share results are based on the following peers: BofA, BARC, BNPP, Citi, CS, DB, GS, JPM, MS, HSBC, SG & UBS. Market shareresults are based on Nomura’s product taxonomy and Nomura’s internal revenues

Strengths

Value Creation Story 1

Investment
Banking

Management Message

Meet client needs by providing differentiatedproducts and services across our underlying
businesses to help enrich society and deliver
shareholder value

Strategic themes

Opportunities& Risks

Key tenets of future growth
A Scale in core business to drive operating leverage

Remarks

In Wholesale, we are focused on growing our core businesses to realize economies
of scale. In Global Markets (GM), we continue to make progress on deepening client

Point A

O-1

O-2

O-3

Growth

R-1

R-2

R-3

Increase market share in core businesses by taking
systematic, client driven approach
Scale in core business to drive operating leverage

Management Message

Key priorities of medium to long-term strategy

penetration and expanding our core GM businesses (e.g. AEJ Credit, US Equity
Derivatives, FX/EM) into adjacent areas of opportunity. In Investment Banking (IB), weare pursuing a targeted strategy, centered on our most competitive offerings (e.g. market
leading Japan IB franchise, strength in Sustainability sub-sector), while increasing

Point B

R-1

Stability

R-2

global client strategy, with ambition to bring our full international product suite to our lobalized platform that is cost-efficient, standardizedG
and scalable

R-3

domestic client base in Japan and to increase cross-sell across international regions
through our global sales structure.
B Globalized platform that is cost-efficient, standardized and scalable

Point C

O-1

O-2

O-3

Diversification

R-1

R-2

R-3

 enerate diversified business mix with balancedG
contribution from businesses including Fixed Income,Equities, Private Markets and Risk Light areasL onger-term diversification into stable, high ROE
asset classes for business like International WealthManagement

In order to effectively scale our businesses and increase profitability across Wholesale,
we need to de-regionalize our platform and optimize costs. As we continue our
globalization efforts, we will build on our Japan franchise and our mature, market-leadinginternational businesses. On the cost front, structural reform is underway with a focus on

Milestones

Revenue/RWA

priority to ensure stability of our platform.

FY2022/23 /March 2023 (Actual)

FY2024/25 /March 2025 (Target)

>6%

>6%

C Longer-term diversification into stable, high ROE asset classes

We are focused on diversifying the Wholesale business mix and will maintain our multi-

Value Creation Story 2

standardization of our processes and functions. Furthermore, robust risk management,
supported by our “Challenge, Escalate, and Respect” risk culture, continues to be a top

KPIs/KGI towards FY2024/25

Value Creation Story 1

productivity and strengthening client relationships. Overall, we continue to execute ouryear commitment to our International Wealth Management (IWM) business, which
produce stable, repeatable revenues at high ROE. Our International Wealth Managementbusiness in AEJ was integrated into the Wholesale Division four years ago to extract

Cost to Income Ratio

96%

86%

the synergies with our Markets and Banking businesses, and is a key driver of growth.
Accelerating our IWM business forward growth plan is a top priority.

KGI

Fee & commission revenue

US$1.1 billion>US$1.3 billion

Income before income taxes¥29.4 billion¥130 billion

Nomura Report 2023

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Nomura Holdings, Inc.

Financial and non-financial data

KPI

Sustainability initiatives
Infrastructure & Power Financing (IPF)

The IWM buildout plan commenced in September 2020 under the leadership of Ravi Raju (Headof IWM), with a mandate to expand the wealth management business in the rapidly growing
AEJ region. The business operates out of offshore hubs in Singapore, Hong Kong and therecently launched Dubai branch, targeting High-Net-Worth, Ultra-High-Net-Worth and Family
Office clients. Significant progress has been made on the front to back platform buildout overthe last 2.5 years, as shown in below chart. This growth is underpinned by momentum in asset
growth, franchise expansion and upgrade of product suite and platform, and collaboration withbusinesses across Nomura. We have an ambition to further scale up assets under management
to US$35 billion and deliver 15%+ ROE in medium term.

14

35

15

25%

~2x

AUM CAGRAUM Growth+50%

US$7bn+1,200+

7

FY20/21

FY21/22

FY22/23

Japan Renewables Project
Finance

North American Power(Solar, LNG, Gas-Fired
Assets)Net
New Money*Source: Inframation, Jan–Dec 2022.

120+

Case study

Front Office
Staff Hires

IPF supported the acquisition of a 400 MW operational utility-scale solar portfolio by Enfinity
Global. The company is a leading renewable energy operator and this acquisition marked asignificant milestone in its expansion in the US, following growth in Japan and Europe. IPF
underwrote the nearly US$300 million facility and distributed it to a variety of lenders suchas Commonwealth Bank of Australia, Fifth Third Bank and Bayerische Landesbank. This

Ambition

Key initiatives and focus areas for the business:
Deepen footprint in existing hubs of Hong Kong andSingapore; expand North Asia business (hired new Headof IWM North Asia); grow newly launched Dubai business

Product Suite Buildout:

Deepen existing product and lending solutions; expansionof investment advisory, wealth planning, FX, insuranceFirm-wide Collaboration:

Closely partner with Global Markets and Investment
Banking businesses to offer best-in class products andsolutions

Financial and non-financial data

Client Franchise Expansion:transaction expanded upona strong relationship initiallyestablished in Japan as
Enfinity Global has continued
to grow as a key global
developer.

Leverage Enhanced Platform to drive operating leverage and enhance client experience

Nomura Report 2023

Value Creation Story 2

New Accounts

FY19/20#8(Since FY19/20)

Revenue11#1

Progress to Date

Value Creation Story 1

IWM AUM (billions of dollar)

Our IPF business has a dedicated New York-based team focused on sourcing, structuring,
executing and distributing financing for green projects and other assets globally. Since its
inception in 2017, the team has underwritten more than US$15 billion of infrastructure andsustainable assets, with more than half of the portfolio in solar and other renewables. The team
was involved in financing deals worth over US$4 billion between January and December 2022,
and the business was ranked #1 in Japan Renewables Project Finance according to Inframation
and #8 in North American Power (Solar, LNG, Gas-Fired Assets).

Management Message

International Wealth Management (IWM)

32

Nomura Holdings, Inc.

1

Spotlight

Management Message

Expansion of our businessthrough partnership

Go Sugiyama

Toru Yamasaki

Director, Executive Vice President
Head of Retail at Nomura Securities Co., Ltd.
Senior Managing Director
Head of Retail at Nomura Holdings, Inc.

President and Representative Director
at The San-in Godo Bank, Ltd.

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33

Nomura Holdings, Inc.

branches in our bank, and the CP is linked with management
consultations for corporate owners. It is also responsible forfinancial and economic education for schools and businesses,
contributing to the growth of the investment population.
Sugiyama We started this Alliance three years ago, and we arevery grateful to have the Alliance and mutual trust between ourcompanies. You just talked about our achievements, and wehave worked relentlessly under the principle that "In order toenrich the region, we first need to expand our clients' assets. "Asa result, we have been very successful in growing our client
assets and recurring revenue assets, and contributing to further
expansion of our business which Retail Division is aiming at.
With various tailwinds, such as the starting of the new NISA
system, we are confident that we can make this a sustainablebusiness by taking advantage of the many contacts we havewith our clients at San-in Godo Bank.

Q
Yamasaki

What effects and changes have you seenfrom your business collaboration?
The most significant impact from this Alliance isFinancial and non-financial data

Yamasaki The Alliance has been carried out with the purposeof establishing a new securities business model that draws on
the strengths of both banking and securities. At the beginningof this Alliance, employees from Nomura Securities said, "It
was a humbling experience to be entrusted with a passbook
from clients, and understanding of clients improved
significantly". On the other hand, employees of San-in Godo
Bank seemed to balk, and say, “I just cannot keep up,”because Nomura employees possess high levels of skill,
experience and knowledge, and their sales approach utilizes
digital tools. Though we felt the differences between the twocompanies initially, we gradually deepened our mutual
understanding and progressed through trial and error. Today,
the all-asset approach, a sales style that draws on thestrengths of both sides, has become our common language.
This is a sales style that understands the full scope of clients’assets and suggests a portfolio according to their risk tolerance

based on our trusted relationships with clients.
As a result, the number of securities accounts increased by
31%, retail client assets increased by 29%, and the number of
installment investment contracted accounts, including NISA,
increased by 35% compared to the combined total of Nomura
Securities, San-in Godo Bank, and its subsidiary, Gogin
Securities, before the Alliance started. The results significantly
exceed the original expectations of both companies prior to
the Alliance.
We call our securities business base the consulting plaza(CP). There are nine offices in Tottori and Shimane prefectures,
and a total of 240 people, including employees on dispatch
from Nomura Securities. In fact, the number of employees
is about 160 (about 40%) less than the total of the threecompanies before this Alliance was formed, and operating
costs except for personnel expenses on our bank side havealso decreased by 200 million yen per year. Nevertheless, wefeel that our performance in the increase of client assets andother areas is better than expected, meaning that the all-asset
approach is gaining recognition from our clients.
In addition to these facts, there are more than 100

Value Creation Story 2

Q

It's been about three years since we started
the Alliance in September 2020. What isyour assessment so far and what is yourcurrent business development plan?

Value Creation Story 1

In December 2019, San-in Godo Bank Group and Nomura Securities signed
a definitive agreement to form a comprehensive business alliance in financial
products intermediary services (hereinafter "Alliance"). This Alliance is an
unprecedented initiative in which employees of Nomura Securities and Sanin Godo Bank work together to provide clients with the various products
and services. Toru Yamasaki, President and Representative Director in
San-in Godo Bank and Go Sugiyama, Head of Retail in Nomura Holdings,
discussed the synergies generated from the Alliance and future prospects.

Q

What is your outlook? As Japan's
population continues to decline, what are
the challenges?

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Nomura Holdings, Inc.

Yamasaki I think the situation of regional financial institutions
is of course different, but I think the market is shrinking in thesame way as our bank. Ensuring the securities business to
become a sustainable business is also meaningful to our
local clients. The alliance with Nomura Securities is one
possible and effective solution, and I think it should be
pursued.
Sugiyama If we increase the number of business partners, wewill have more opportunities to serve more clients, but webelieve it is important to first partner with local financial
institutions that share our values and beliefs. Instead ofsimply following the numbers, we will work with regional
financial institutions who we can build long-term trusted
relationships to ensure we create positive change and makeour business model more sustainable.

Financial and non-financial data

Nomura Report 2023

Q

What is your view on expanding allianceswith other banks in the future and what is
the significance?

Value Creation Story 2

Yamasaki In this region, the shift from savings to investment
has not progressed yet, and while the population is declining,
there is still plenty of room to expand the securities business.
I strongly believe that we can continue to grow and further
increase the pace of growth. Our current challenge is toexpand and broaden the base of the investment population
through financial and economic education.
Also, banks routinely deal with clients throughout theirlives. Upon becoming a member of society, it generally
starts with the designation of a payroll transfer, followed bya car loan, a mortgage, an education loan and a transfer ofretirement benefits. Now, through utilizing the Alliance with
Nomura Securities, we are beginning to offer optimal banking
and securities services tailored to the client's life stage andrisk tolerance, including investment trust accumulation, asset
building using iDeCo, and inheritance consulting. There is still
a lot of work to do, and I definitely feel like there is an oceanof opportunities.
Sugiyama I agree. The investment population will increase
from here on, and there may not be enough financial advisors
nationwide. Additionally, in terms of inflation, we have gonefrom a time when asset values could be protected if they
were kept in deposits to a time when advice on asset
management and asset building is really needed. Population
decline is a nationwide issue, not just in the San-in region,

and we would like to develop a business model that canovercome this challenge.
In addition, there are many cases in inheritance and asset
succession in rural areas that do not proceed smoothly
because the decedent and heir are physically separated due
to outflows of young people to urban areas.
To meet these challenges, I believe that there is a room to use
Nomura's nationwide network of headquarters and branches
while providing services to San-in Godo Bank’s clients.

Value Creation Story 1

Yamasaki Through our collaboration, we are able to create
additional touchpoints and offer greater services to ourclients. For example, at the end of March, civil servants retireat the same time, and about 90% of the retirement allowance
inflows into our bank at once. Previously, these funds
outflowed to other financial institutions' investment funds,
but through this partnership, we are leveraging each other's
strengths and steering funds toward our securities businessthrough the all-asset approach.
Sugiyama Achieving 90% share is really incredible. In thecase of Nomura Securities, we can make an investment
proposal only after asking the client about the timing andamount of the retirement allowance. It is very different fromour business model in which we receive funds prior to
proposing solutions.

Management Message

that client satisfaction has increased. This is confirmed byvarious questionnaires. I also feel that it has had a positiveeffect on the development of the employees from San-in
Godo Bank. It has been a great inspiration to us thateveryone from Nomura Securities is highly motivated to learn
and work and achieve their goals.
To be honest, the securities business has not been easy
for us. It means developing the infrastructure of the securities
business to respond appropriately to the regulation changes,
to provide an attractive product range, and to continue toenhance the skills of our employees. And to cover thesecosts with the commissions we receive from our clients
while the commission rate has been declining year by year,
we were wondering if we could balance the bottom line andgrow our securities business. Through this Alliance, the top
line has grown, costs have fallen, and now we are able todraw up a growth strategy, which I am delighted to see as a
top executive. More than that, we really appreciate the factthat our sales style is not just taking commissions from ourclients, it is helping them build their assets.
Sugiyama Before the Alliance, Nomura Securities had only
three branches in San-in area: Matsue, Yonago and Tottori.
Only 90 sales partners covered a distance of 300 km from east
to west. Our reach was overwhelmingly insufficient, and wewere faced with the challenge of not being able to adequately
serve our clients. Through this Alliance, I think the key benefit
was that we became able to deliver services to many clients bycombining our strengths. These include our shared information,knowledge, products and services, and San-in Godo Bank's
strengths including its significant presence and client networks.
From listening to our employees, we hear that it ischallenging for companies with different cultures tocollaborate together for the same purpose, but it is excitingat the same time, and driving innovation. In recent years,
an increasing number of young employees have raised theirhands to take on this new business models in addition toexperienced employees who want to apply the know-how
they have cultivated at Nomura to partner companies, andthis has helped broaden their career development.
It was also a great achievement for us to realize once againthat the products we handle on a daily basis, the various
consulting tools and investment information, our productservices, and our daily sales activities have added value andare differentiated.

Wholesale Division - Management interview

Executive Officer
Head of Wholesale

I have spent significant time reviewing ourWholesale business including areas of growth,challenges, and opportunities. My assessment isthat in our core business areas, we do many things
well – we have strong client relationships, we are

well recognized by the industry, we have deep
structuring capabilities and as a result we havebuilt some leading market positions. However,evidently this is not enough especially when fee
pools drop as much as last year. Our biggest
challenge is the lack of scale relative to global
bulge bracket banks. This is a meaningfulstructural challenge calling for a well laid-out

Nomura Report 2023

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Nomura Holdings, Inc.

Financial and non-financial data

Q

What changes have you brought to thebusiness since you became Head ofWholesale?

Value Creation Story 2

Chris Willcox was appointed as the Headof Wholesale and the first non-Japanese
Executive Officer of Nomura Holdings, Inc.
in October 2022. As Executive Officer, he
has additional responsibility for the growthof Nomura’s International Investment
Management Division, and oversees theInternational Corporate functions to ensure
close connectivity with Wholesale business.

Value Creation Story 1

Christopher Willcox

medium to long-term strategic plan, which I will
discuss shortly. In the meanwhile, we have taken
significant steps to improve platform efficiency.
Some of the key structural and short-term
initiatives include:– F irst, I have taken significant steps to increase
the stability of our platform. To start, we conducteda thorough front-to-back review of the Wholesalecost base. While we have made progress in cost
optimization over the prior two years, there werestill areas where we could be more efficient. As
part of this cost review, we executed a plan tostreamline the organizational model and refocused
our Investment Banking platform to concentrate oncore sectors and products.
– Second, I have implemented structural changes toglobalize the Wholesale operating model. Historically,
we have taken a more regionalized approach to the
management of our business, but creating a
globalized platform with standardized functions
and processes is critical to our go-forward strategy.
We’ve globalized the Wholesale management
structure under an experienced leadership team,and we have also designated a global officeraligned to Wholesale within each Corporate function.
– T hird, I have spent a significant amount of timeworking with my leadership team to develop a
new strategic plan for the Wholesale Division tomeet our Group-wide ROE targets of 8-10%, andwe are now focused on executing this plan.

Management Message

2

Spotlight

Management Message

Q*Based on CY19-22 average.

Q

What are the key priorities going forward?

There are three key structural challenges we needto address:– F irstly, stability. We need to continue our efforts to
globalize our platform and optimize costs so that
we can efficiently scale our business.
– S econdly, growth. I can cover the details of our
growth plan shortly, but at a high level, we will
focus on increasing market share in our corebusinesses by taking a systematic, client driven
approach. We need to get to scale and unlock
operating leverage.
– T hirdly, diversification. Our growth plans aim togenerate a diversified business mix with abalanced contribution from businesses including
Fixed Income, Equities, Private Markets and Risk
Light areas. To further enhance cross-cycle

Value Creation Story 2

Addressing Structural Challenges

Stability

GrowthDiversification

Structural cost reduction to
improve earnings stability

Scale in core business to drive
operating leverage

Longer-term diversification into
stable, high ROE asset classes

Increase globalization andstandardization of processes andfunctions ddress product gaps throughAtargeted hiring plan ccelerate growth plan inA
International Wealth Management

 nhance Front Office cost controlsE- non-revenue functions, nonpersonnel expenses optimization

Nomura Report 2023

36

 aunch systematic client growthLplan to expand wallet share

Nomura Holdings, Inc.

Financial and non-financial data

The market opportunity outside of Japan is verysignificant; in fact, international regions make up
95% of the total Wholesale fee pool*. We have alarge international client base, which we continue togrow, and we are well positioned to capture theinternational market opportunity. Our businesses in
the Americas, EMEA, and AEJ currently contributearound 73% of the Wholesale Division’s revenues
and are central to our growth ambitions.
Our position in Japan plays a critical role in ourinternational strategy, and we have consistently
leveraged the strengths and dominance of ourJapan franchise to offer our clients unparalleledaccess to markets and products globally. As we
execute on our growth plan and globalization
efforts, we will continue to connect our international
businesses with Japan.
We will continue to focus our efforts on areas
where we can build critical mass, differentiate ouroffering and compete effectively. We have created awell-diversified and resilient business in ourinternational regions backed by targeted
investments. We have market leading Fixed Income
businesses across the globe, with particularstrengths in each region. For instance, we have astrong global Securitized Products business led

from the US, and we are also especially competitivein AEJ Credit and EMEA Rates. Further, we haveestablished a robust international Equities platform,
particularly in the US, and built a targeted
Investment Banking offering globally. We willleverage these regional strengths when we look to
broaden our product offerings in a given region andgrow our business internationally.

Value Creation Story 1

Please describe the rationale for Nomura
having a relatively large footprint outside
Japan as well as the appeal of thesebusinesses.

Management Message

2

Spotlight

stability, we aim to capture repeatable stableearnings at high ROEs for businesses like
International Wealth Management.

Nomura Report 2023

37

Nomura Holdings, Inc.

Financial and non-financial data*E xcluding increase in expenses due to inflationary items (e.g. wage inflation, energy
prices etc.), increase in variable expenses linked to revenue growth, and investment
in business growth initiatives. The saves are on run-rate basis as of March 2025 andalso exclude one-off costs required to execute the structural reform initiatives.

Eventually, we expect that these initiatives will leadto systematic expansion of wallet share with ourmost important clients across Wholesale.

Value Creation Story 2

As I mentioned earlier, we have undertaken asystematic review of our processes and functions todevelop a strategy for creating a sustainable costbase. At Investor Day, I laid out our plan to achieve
US$250 million+ of cost saves by FY24/25 on anexit run rate basis*. This plan includes actions tostandardize functions, remove duplication from ourorganizational structure, and simplify our operations.
Structural reform is a key priority over the next few
years, both for Wholesale and Nomura overall.
We are also focused on strengthening resource
efficiency and optimizing our approach to managing
resources. In collaboration with Treasury, we haveinstitutionalised more efficient measures to manage
funding and liquidity across our Global Markets
businesses. We have already increased our
Revenue/RWA ratio, and we expect to continue toexceed the 6% Revenue/RWA target in the medium
term – a sign of our continued discipline in resource
management.

We are focused on addressing challenges aroundlack of critical mass as well as gaps in our productline-up, regional coverage and strengthen thesystemic approach for our key clients. Our focus is
to drive economies of scale and improve our coreearnings capabilities across Wholesale. To facilitate
this, we have refined our growth plans across theWholesale businesses and have laid out three key
initiatives below.
– F irst, we will pursue a targeted growth plan in
Investment Banking. We will continue to build on
the success of our leading Japan IB business, andwill leverage our position in Japan as we seek tocapture more cross-border opportunities. We willcontinue to focus on strengthening our core client
relationships, ensuring we are well positioned tomeet client needs while driving more repeat
business and increasing the number of IB clients
who rely on us for multiple products. We will focus
on building scale where we have competitive
global offerings, including monetizing theopportunity in our Greentech Industrials andInfrastructure group.
– S econd, in Global Markets, the next phase of our
growth will come from scaling areas where we are
already strong and expanding into adjacent areasof opportunity. We will look to scale the
Securitized Products business globally, replicating
the success of our robust US platform. Likewise,
we will target growth in EMEA and AEJ Equities,
leveraging our strengths in the US and Japan.
– T hird, we are growing the International WealthManagement business. Since integrating thisbusiness into the Wholesale Division in September
2020. we have opened 1,200 new accounts anddoubled AUM, reaching US$15 billion at the end of
the FY22/23. We expect to scale up AUM to
US$35 billion in the medium-term, and will look foropportunities to further build on this target.
This AUM target is supported by our aim to further
deepen presence across our core markets (e.g.
Greater China, Dubai and Southeast Asia) whilepursuing product expansion and platform
enhancements. To this effect, we have made key
hires in North Asia and have set up a branch in
Dubai. We will also expand our product suite,
expand our credit book and launch new lending
products. Another priority for us is to drive
collaboration with Global Markets, Investment
Banking and our Japan franchise leveraging
unique strengths that our platform has to offer.

Value Creation Story 1

Q

Expanding on your point on stability, can you
describe some of the steps you are taking to
reduce costs and raise return on resources?

Q

Beyond optimizing costs and increasing
resource efficiency, what is your strategy
to accelerate growth and improve PTI?

banks, hedge funds, corporates and high net worth individuals. In our fast moving
industry, innovation has always been our key differentiator: GM has been awarded
the “Derivatives House of the Year”* regularly and we are a recognized pioneer inintroducing many new products to market.

Rig KarkhanisManagement Message

Global Markets businessOur 4,000+ clients are sophisticated and diverse, and include global asset managers,

Q Could you describe the strategy of GM?

Head of Global Markets

Q What does Global Markets do?

Q What are the shared values of the team that drive success?

38

Nomura Holdings, Inc.

Financial and non-financial data

We anchor our GM business around three core principles: Entrepreneurial Leadership(pursue the best interests of clients), Teamwork (leverage collective strength) and
Integrity (trusted partner and highest standards of compliance). Client-facing staff in GM
are our first line of defense and a key pillar of our ability to manage risk. We consistently
promote the culture of integrity and high performance through a combination of the rightincentives and training.

* S ource: Risk.net, Risk Awards 2023, "Interest Rate Derivative House of the Year"
Global Capital, Global Derivatives Awards "Interest Rate Derivatives House of the Year 2021 & 2022", "Volatility Derivatives House of the Year 2017-2020"

Nomura Report 2023

Value Creation Story 2

Nomura Global Markets (GM) plays a key role in the global financial architecture
by facilitating Financial and capital markets activities between the East and West,leveraging our Asian heritage and presence across key global financial hubs. We operate
as a primary dealer in 15+ government securities, provide liquidity in 30+ currency pairs
and are a member of 30+ stock exchanges. GM operates a globally integrated franchiseacross products, clients and regions to deliver comprehensive services ranging fromsales & trading to research, financing, solutions and wealth management.
In Japan, we have a dominant presence across Fixed Income and Equities, which
gives us unique advantages in connecting global investors to the vast liquidity pool in
the region and bringing global products and services to our clients in Asia. Our homemarket also anchors our cross-border client activities, facilitated by highly collaborative,
diversified, globalized and culturally aligned teams.
Complementing our strong home market franchise is our overseas footprint:international business now generates about 75% of global GM revenues and accounts
for a similar proportion of our headcount from 60 nationalities. As the only truly Asianhouse with global reach, we are uniquely positioned to deliver unparalleled access to,from and within the world’s vibrant growth markets. We have a differentiated offering
built around our core strengths in areas such as Global Rates, Foreign Exchange,
Emerging Markets especially in Asia, Securitized Products and Equities, and growth inWealth Management.

Value Creation Story 1

Main priority for GM is to build upon its current, solid platform and deliver a “stepchange” in performance, so as to deliver consistent through-the-cycle returns whichis underpinned by a balanced portfolio of cyclical and countercyclical businesses. For
the next phase of GM growth, we are targeting an approx. 20% revenue expansion.
However, we are not going to try to be “everything for everyone” or pursue growth at
the cost of profitability; we will compete in areas where we have strong differentiating
factors in terms of products, people and clients. Much of our growth will come fromexpanding GM’s core strengths to unlock economies of scale and generate operating
leverage. We are therefore globalizing our businesses to leverage strengths acrossregions and clients. In line with this strategy, we are investing to further bolster our
global franchise in Rates, expanding in AEJ/EMEA Equities by leveraging our strong US
and Japan franchises, and replicating our regional strengths – US Securitised Products,
Asia Credit and FX/EM – to rapidly scale up in adjacent products/regions.
Our client franchise is the bedrock of the GM platform, with client revenue
contributing more than 80% of overall GM revenues. We continue to burnish our “client
first – client led” credentials and have put in place a globally consistent, coordinated,holistic client strategy to deliver our best-in-class offerings to clients. Our ambition is tofurther globalise client relationships, offer uniform services and enhance content andidea generation to ensure we are deepening our wallet share and maximizing cross-sellopportunities.

Rig Karkhanis is the Head of Global
Markets at Nomura. He has been with
Nomura for over 10 years in various
roles, including Deputy Head of GM
and Global Head of FX&EM.